Federal Update

Though the Arizona Legislature is currently not in session, the National Association of REALTORS® continues to monitor activity at the federal level. From risky mortgages and flood insurance, to short term rentals and water quality, your legislative and government affairs team has several updates to share.

During this week’s National Convention, we will be meeting with representatives from NAR to get updates on issues we’re currently focused on at the federal, state and local levels. We’ll bring back reports from NAR policy committees, as well as receive updates on RPAC and Community Outreach programs.

The anti-money laundering (AML) legislation is designed to stop the formation of anonymous shell companies created under state law that are often used by bad actors to launder money or to commit other illicit financial crimes.

CFPB Director Kraninger provided her semi-annual report to Congress to discuss current updates and developments at the Bureau. She also provided some insight on the qualified mortgage (QM) patch, stating that the Bureau is working on a plan as the transition to end the QM patch is forthcoming.

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively “the Agencies”) adopted a final rule increasing the threshold for requiring an appraisal in residential real estate transactions from $250,000 to $400,000.

The Internal Revenue Service this week released final guidance regarding a safe harbor to help owners of real estate enterprises determine whether they qualify for the new 20% deduction for “qualified business income.”

The Congressional Western Caucus, chaired by Rep. Paul Gosar (R-AZ), held a roundtable on 9/24 with several House members and officials from the Department of Interior to discuss a 19-bill draft legislative package they will be introducing to reform the Endangered Species Act.

NAR joined a stakeholder coalition letter to all Members of the U.S. Congress urging a long-term reauthorization of the Terrorism Risk Insurance Program (TRIP) before its expiration at the end of 2020.